SMM Daily Review (July 30)

SHANGHAI, July 31 (SMM) --

    Copper:

    The fluctuation range for SHFE copper prices was about RMB 600/mt. SHFE copper prices soared to the high level in the afternoon guided by LME copper prices. In spot copper market, spot premiums have risen from 0 to RMB 150/mt in the morning, and then further rose to RMB 200/mt with the falling SHFE copper prices. Premiums for copper with Guixi brand have risen to RMB 200-250/mt in order to remain selling prices in the RMB 43,500-43,550/mt range, with low willingness of cargo movement and limited market supply. Today, a large volume of imported copper flowed into domestic market, but consumers took wait-and-see attitude given fluctuated copper prices. However, as LME copper prices rebounded in the afternoon, spot premiums have recovered to RMB 0-150/mt in domestic market. GDP data to be released on Friday will determine the copper price trend next week.

    Aluminum:

    SHFE aluminum prices opened low and went lower in the morning, but rebounded rapidly in the afternoon to RMB 14,600/mt, with fluctuation range of RMB 400/mt. In spot aluminum market, offers fell to RMB 13,250/mt from RMB 13,350/mt, but still no deals were made. Brand aluminum firms did not move cargos. Inquiries increased in the afternoon, but cargo-holders have become unwilling to sell off goods hastily. Market players remained confident in aluminum price outlook.

    Lead:

    In Shanghai lead market, SMM lead prices fell by RMB 100/mt to the range of RMB 13,400-13,600/mt. The consumers had no interest in purchases, but suppliers were active in move goods, with traded prices in the RMB 13,350-13,400/mt range, and with lackluster trading activity. 

    Zinc:

    SHFE zinc prices opened low and went even lower in the morning. SHFE zinc three-month contract prices recovered to RMB 14,000/mt in the afternoon, but SHFE zinc spot-month contract prices showed weak performance. In spot zinc market, SMM prices for 0# zinc fell by RMB 300/mt to RMB 13,650-13,750/mt. 0# zinc prices stabilized at RMB 13,600/mt in the morning, and 1# zinc prices remained in the RMB 13,500-13,550/mt range. Imported zinc also performed actively. SHFE zinc prices advanced in the afternoon, creating more inquiries and generating reluctance of cargo-holders in moving goods. They thought spot zinc prices are expected to rebound to RMB 13,600-13,800/mt, if prices can receive support at RMB 13,500/mt. 

    Tin:

    In Shanghai tin market, rebounded LME tin prices brought confidence to domestic market, so tin prices stabilized in the RMB 111,500-112,000/mt range despite of weak market sentiment.

    Nickel:

    In Shanghai nickel market, traded prices were RMB 125,000-126,000/mt for imported nickel and RMB 128,500-129,000/mt for domestic nickel. Trading sentiment was weak in the morning, with wait-and-see attitude dominating the market. LME nickel prices advanced in the afternoon, boosting traders’ confidence. Traders became unwilling to move cargos and were waiting for nickel prices to move up to RMB 130,000/mt tomorrow, though inquiries increased.

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